When it comes to financing your business’s growth and success, there’s a powerful tool that often goes overlooked – Asset-Based Lending (ABL). While it might seem like a more expensive option at first glance, secured lending is not just a cost; it’s an invaluable investment in your business’s future. We’ll explore why asset-based lending can be the key to unlocking your business’s potential.
Leveraging Accounts Receivable
Asset-based lending, is all about leveraging your company’s assets to secure the capital needed for expansion. Instead of viewing it as a cost, think of it as an investment in your business’s future. The primary assets used in our ABL is accounts receivable (AR). This means that your outstanding invoices become more than just numbers on a balance sheet; they become a valuable resource for growth.
By utilizing your accounts receivable, you’re not only unlocking capital but also securing the resources required to take your business to the next level. Whether you’re looking to expand your operations, invest in new equipment, or hire additional staff, asset-based lending provides the finances to do so.
Working Capital That Grows With Your Business
One of the remarkable aspects of asset-based lending is its flexibility. Let’s take a closer look at how this works. Imagine you secure an initial $100,000 Accounts Receivable Revolving Line (AR Line) with Camel. This initial funding isn’t just a fixed sum; it’s a dynamic resource that can grow alongside your business.
The growth potential of your AR Line is directly tied to your business’s performance. Depending on your turnover ratio, that initial $100,000 can multiply significantly. For instance, if your turnover ratios are strong, that $100,000 could grow into an impressive $1.2 million. And if your business is thriving, it could even reach a remarkable $2.4 million. This flexibility means that as your business expands and your accounts receivable increase, so does your access to working capital.
Self-Liquidating Loans
Asset-based lending also offers a unique advantage – self-liquidation. Unlike traditional loans that may put pressure on your cash flow, ABL aligns with your business’s revenue generation. Your outstanding invoices become the means to repay the loan. This means no stress, no worries, just organic growth.
As your customers pay their invoices, you’re effectively paying off the loan and we refund the difference. It’s a self-sustaining cycle that allows you to focus on growing your business rather than worrying about servicing debt. This self-liquidating aspect of asset-based lending ensures that your financial resources are always aligned with your business’s performance.
Contact Camel Today
In the world of business finance, asset-based lending can be your ticket to a future filled with growth and success. At Camel Financial, we understand the value of your business’s assets, and we’re here to help you leverage them to achieve your goals. Whether you’re a small startup looking to scale up or an established business aiming for new heights, our asset-based lending solutions can provide the financial foundation you need.